East Penn Financial — Shareholder Meeting (May 2006)
58 slides from East Penn Financial's shareholder meeting presentation, May 16, 2006
Slide 1: 2006 Annual Shareholders Meeting
2006 Annual Shareholders Meeting
Slide 2: Music by Rudy Lucente
MUSIC BY RUDY LUCENTE
Slide 3: Welcome to Our Annual Meeting
WELCOME TO OUR ANNUAL MEETING May 11, 2006
Slide 4: "Woody" Rohrbach, Chairman
“WOODY” ROHRBACH CHAIRMAN
Slide 5: Debra K. Peters, Executive Vice President
DEBRA K. PETERS EXECUTIVE VICE PRESIDENT
Slide 6: Forrest "Woody" A. Rohrbach
Forrest “Woody” A. Rohrbach Chairman of the Board of Directors Chairman of Board Loan Committee East Penn Financial Corp.
Slide 7: Dale A. Dries – Director
Dale A. Dries – Director East Penn Financial Corp.
Slide 8: Tom R. Gulla - Director
East Penn Financial Corp. Tom R. Gulla - Director
Slide 9: Allen E. Kiefer – Director
East Penn Financial Corp. Allen E. Kiefer – Director Chairman of the Governance & Nominating Committee Vice Chairman of the Audit Committee Vice Chairman of the ALCO Committee
Slide 10: Brent L. Peters – President & CEO
East Penn Financial Corp. Brent L. Peters – President & CEO Vice Chairman of the Board Loan Committee
Slide 11: Gordon K. Schantz - Director
East Penn Financial Corp. Gordon K. Schantz - Director
Slide 12: Linn H. Schantz - Director
East Penn Financial Corp. Linn H. Schantz - Director
Slide 13: Don R. Schneck - Director
East Penn Financial Corp. Don R. Schneck - Director
Slide 14: Peter L. Shaffer – Director
East Penn Financial Corp. Peter L. Shaffer – Director Chairman of the ALCO Committee
Slide 15: "Harry" Tantaros - Director
East Penn Financial Corp. “Harry” Tantaros - Director
Slide 16: Dr. Geoff Toonder – Director
East Penn Financial Corp. Dr. Geoff Toonder – Director Chairman of the Audit Committee
Slide 17: Atty. Don S. Young – Director
East Penn Financial Corp. Atty. Don S. Young – Director Vice Chairman of the Governance and Nominating Committee
Slide 18: "Woody" Rohrbach, Chairman
“WOODY” ROHRBACH CHAIRMAN
Slide 19: Debra K. Peters, Executive Vice President
DEBRA K. PETERS EXECUTIVE VICE PRESIDENT
Slide 20: "Woody" Rohrbach, Chairman
“WOODY” ROHRBACH CHAIRMAN
Slide 21: Motion to Waive Reading of the 2005 Minutes
Motion to Waive the Reading of the Minutes of the 2005 Annual Meeting of Shareholders and to Approve the 2005 Minutes
Slide 22: Don Peterson, Judge of Election
DON PETERSON JUDGE OF ELECTION
Slide 23: Motion to Elect Four Class B Directors
Motion to Elect Four Class B Directors Dale A. Dries Thomas R. Gulla Linn H. Schantz Atty. Donald S. Young
Slide 24: Motion to Ratify Beard Miller Company LLP as Auditors
Beard Miller Company LLP as Independent Auditors for the year ending December 31, 2006 Motion to ratify the selection of
Slide 25: "Woody" Rohrbach, Chairman
“WOODY” ROHRBACH CHAIRMAN
Slide 26: Brent L. Peters, President & CEO
BRENT L. PETERS PRESIDENT & CEO
Slide 27: East Penn Financial's Annual Performance
East Penn Financials’ Annual Performance Emmaus Branch opens on 11/1/1991 Trexlertown Branch opens on 11/18/1996 Macungie Branch opens on 10/22/1997 Mertztown Branch opens on 10/16/1998 Emmaus High School Branch opens on 12/2/1999 Fogelsville Branch opens on 11/22/1999 Cedar Crest Branch opens on 1/
Slide 28: Forward-looking Statements
Forward–looking Statements The Corporation has made forward-looking statements in this report that are subject to assumptions, risks and uncertainties. Because of the possibility of change in the underlying assumptions, actual results could differ materially from these forward-looking statements. In
Slide 29: 450.0 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 2000 2001 2002 2003 2004
450.0 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 00 2000 2001 2002 2003 2004 2005 1st Qir 2006
Slide 30: Balance Sheet Highlights - 2005 vs. 2004
East Penn Financial Corporation Balance Sheet Highlights - 2005 vs. 2004
Slide 31: 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2000 «2001 492002 «92003 «= 2004
3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2000 «2001 492002 «92003 «= 2004 «= 2005 = 1st Qtr 2006
Slide 32: Income Statement - 2005 vs. 2004
East Penn Financial Corporation Income Statement - 2005 vs. 2004
Slide 33: Past Due Loans
Past Due Loans 1 st Qtr. Years Ended December 31 1.20% 1.29% 1.53% Peer Group Avg. 0.47% ** 0.71% 0.92% 0.78% Total Past Dues 0.25% 0.22% 0.44% 0.21% 90 Days and Over 0.22% 0.49% 0.48% 0.57% 30-89 Days 2006 2005 2004 2003
Slide 34: Allowance for Loan Losses
Allowance for Loan Losses 0.13% 0.17% Peer Group Avg. 0.01% ** 0.07% 0.03% Net ChgOffs/Loans 1.07% 1.04% 1.17% ALLL/Total Loans $3,151 $3,072 $2,838 Ending Balance Provision Expense Recoveries Charge-offs $3,072 $2,838 $2,403 Beginning Balance 1Q 06 2005 2004 (in thousands)
Slide 35: Route - Bethlehem
Route 512 - Bethlehem
Slide 36: State Avenue
State Avenue
Slide 37: State Avenue
State Avenue
Slide 38: State Avenue
State Avenue
Slide 39: State Avenue
State Avenue
Slide 40: State Avenue
State Avenue
Slide 41: MacArthur Road
MacArthur Road
Slide 42: MacArthur Road
MacArthur Road
Slide 43: Semi-Annual Cash Dividend
Semi-Annual Cash Dividend The first of two dividend payments… 11 cents per share, payable February 28, 2006 to shareholders of record February 3, 2006. The second cash dividend payment will be announced in the second half of 2006.
Slide 44: Dividends Per Share
0.20 0.15 0.10 Dividends Per Share (annualized) 0.05 0.00 2001 2002 2003 2004 2005
Slide 45: 2005 Price and Yield Rankings, Banks in Pennsylvania
2005 Price and Yield Rankings (January 1- December 31) 99 Banks in Pennsylvania ‘YTD PRICE CHANGE (%) 3 MONTH PRICE CHANGE (%) DIVIDEND YIELD (%) 0 Acoma ” ex a nk em ® 2d bt wp a ecm aCe tn 3 maronccapense” ra pear m 3 ruts boon te me ‘aay © 4 teen re 3) fea Pome Cpe re eer tay anon a © raderoa ptm
Slide 46: Comparable Group Analysis
Tangible Equity/ Price/ Price/ Total Tangible LTM LTM Tangible LTM Market Name City St. Assets ($) Assets (%) ROAA (%) ROAE (%) BV (%) EPS (x) Cap. ($) EPEN Overview Comparable Group Analysis Note: (1) Data as of or for the Period Ending December 31, 2005 Source: SNL Financial Data as of or for the
Slide 47: EPEN Historical Price/TBV Compared to Median of Composite
EPEN Historical Price/TBV Compared to Median of Composite EPEN Overview Three-Year Historical Price/LTM EPS and Price/TBV Composite = BCBP, CMYC, CRRB, DIMC, FCCY, HMLN, HONT, JFBC, JUVF, KISB, MBP, NWFL, ORGC, PFIS, SOME, TYCB, UNNF Source: SNL Financial 150% 170% 190% 210% 230% 250% 270% 290% 310%
Slide 48: EPEN Historical Return on Average Equity vs. Composite
EPEN Historical Return on Average Equity Compared to Median of Composite EPEN Overview Three-Year Historical Return on Equity Composite = BCBP, CMYC, CRRB, DIMC, FCCY, HMLN, HONT, JFBC, JUVF, KISB, MBP, NWFL, ORGC, PFIS, SOME, TYCB, UNNF Source: SNL Financial 10x 11x 12x 13x 14x 15x 16x 17x 18x 2003
Slide 49: Top Publicly Traded Community Banks
Top 200 Publicly Traded Community Banks Banks & thrifts with assets up to $1 billion. Ranked by 3-year average ROE. we ost Aachate e ee he retina ‘Ticker — (sil) ($000) Aug ROE| Growth Based Ratio Performance ROE (%) YoY (X) Extrsorsinary (8) Ratio (%) fms a a [ee | a ae TE a VT 1 tec towey a a a ‘t
Slide 50: Comparative Price Appreciation
Comparative Price Appreciation EPEN Overview Three-Year Historical Stock Price, Liquidity and Volume Analysis Source: FactSet 90% 100% 110% 120% 130% 140% 150% 160% 170% 5/08/03 9/22/03 2/05/04 6/22/04 11/03/04 3/21/05 8/03/05 12/15/05 5/08/06 EPEN S&P 500 Composite NWFL, ORGC, PFIS, SOME, TYCB, UNN
Slide 51: Brent L. Peters, President & CEO
East Penn Financial Corp. BRENT L. PETERS PRESIDENT & CEO
Slide 52: East Penn Financial Corp.
inancial Corp.
Slide 53: "Woody" Rohrbach, Chairman
East Penn Financial Corp. “WOODY” ROHRBACH CHAIRMAN
Slide 54: Management Reports and Reported Actions of Directors and Officers
Management Reports and Reported Actions of the Corporation’s Directors and Officers for the Year Ending December 31, 2005. Motion to approve a resolution to confirm
Slide 55: Don Peterson, Judge of Election
DON PETERSON JUDGE OF ELECTION
Slide 56: "Woody" Rohrbach, Chairman
“WOODY” ROHRBACH CHAIRMAN
Slide 57: Motion to Adjourn the Annual Meeting
Motion to adjourn the Annual Meeting of Shareholders for the Year 2006
Slide 58: Please Join Us in the Museum for Refreshments
PLEASE JOIN US IN THE MUSEUM FOR REFRESHMENTS